Navigating the power shift: a comparative study of electricity grid remunicipalization in medium-sized German cities

Purpose This study aims to examine the remunicipalization of local electricity grids in three medium-sized German municipalities. It also aims to understand how the decision-making in these more typical cases compares, offering a perspective that extends beyond the better known examples of Berlin and Hamburg. Design/methodology/approach A veto-player framework guides the analysis of interactions between incumbent energy companies, political parties, citizens and local authorities. Data was collected through official documents, press releases and semi-structured interviews. This study applies qualitative content analysis with a mixed coding scheme to examine decision-making processes, arguments and obstacles to remunicipalization. Findings This study suggests that remunicipalization is a pragmatic process driven by cost-effectiveness rather than a transformative grassroots project. Financial arguments often take precedence over ideological ones, with external consultants playing a key facilitative role. Local administrations and mayors tend to adopt a passive stance, while incumbent energy companies frequently act as veto players. Yet, incumbents may negotiate when opposition becomes economically unsustainable. Practical implications As many electricity grid contracts approach expiration in the early 2030s, the findings offer timely insights for local policymakers. Strategic early planning is essential to navigate remunicipalization effectively within the context of Germany’s ongoing energy transition. Originality/value This study contributes to academic debates on remunicipalization by examining less prominent and failed cases in a sector that has received considerable international attention. In doing so, it addresses criticisms of earlier research and deepens understanding of remunicipalization dynamics.